As a part of its regulatory activities, the UK financial markets' regulator Financial Conduct Authority has issued UK FCA XMarkets Forex broker warning. The warning aims to protect UK-based investors from being scammed by this entity.
15 February, AtoZForex – The key financial regulator of the UK markets, the Financial Conduct Authority (FCA) has issued a warning for the investors’ community. The regulator stated that the entity under the spotlight, XMarkets, is an unauthorized company.
UK FCA XMarkets Forex Broker Warning Details
The UK watchdog further states that XMarkets has been providing financial services or products to the UK-based investors without any authorization to do so. This implies that the firm did not have regulatory permission, as per the FCA official statement.
However, the UK FCA notes that all individuals and firms that intend to promote or sell financial services or products in the UK need to have the authorization by the FCA.
Furthermore, the UK financial markets supervisor highlighted that this brokerage might be a scam. The regulator has added that the entity was flagged for targeting and operating the UK investors without a license. Moreover, the watchdog stresses that the company has been operating from an undisclosed location while soliciting to the UK clients online via www.xmarkets.com.
UK Investors Lose £87K Daily to Binary Options Scams
Following on this, earlier this January, the UK FCA has published a warning to investors to exercise caution in regards to the online investment opportunities. The reason for the recent warning from the FCA stems from the market data regulator has acquired. The FCA has found out that investors in UK have lost an average of £87,410 per day, over the course of 2017.
As per the official warning, scammers usually target potential investors via online techniques, including social media method. One of such is often carried out by uploading images of luxury items for the purpose of attraction. Some unreliable entities use this technique to lure investors.
According to FCA, firms also use various tactics to decrease or even entirely eliminate the chances for investors to yield profits or withdraw funds. Some of the techniques include changing market prices in the trading platform or creating unreasonable payout clauses in their terms and conditions. Some firms simply refuse to pay back investors’ money.
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